> How Much Should You Be Paying For Mutual Fund Ratios? - Per Stirling




How Much Should You Be Paying For Mutual Fund Ratios?

01 Per Stirling Capital Outlook August 2017

Morningstar, whose mission is to empower investors, just came out with their U.S. Fund Fee Study and shared several good insights, which I will highlight here:

  • The asset-weighted average expense ratio for U.S. open-end mutual funds and exchange-traded funds was 0.48%.
  • “Investors are increasingly seeking to minimize investment costs, which has led them to favor lower-cost funds.”
  • “…historically, fees are one of the best indicators of future relative performance, as lower-cost funds generally have greater odds of surviving and outperforming their more-expensive peers.”
  • “…this trend toward lower fund fees is likely to continue. Today’s investors are paying roughly half as much to own funds as they did in 2000, 40% less than a decade ago, and about 26% less than five
    years ago.”

This would be an opportune time to see what your mutual fund expense ratios are. You can easily do so by going to www.morningstar.com and typing in the name of the funds or their ticker symbol which you own. Then you can touch base with your financial advisor and see how low cost funds such as index funds could help improve your portfolio performance.

Written by: Kenneth Price, CFP®, CFA®, ChFC®, CLU®, AEP®

Reprinted with permission from Life in the Ranch, a magazine of N2 Publishing

Source: www.morningstar.com/blog/2019/04/30/ us-fund-fee-study.html
Advisory services offered through Per Stirling Capital Management, LLC. This material is provided for informational purposes only. Individual advice should be provided by the appropriate tax, legal, financial or accounting professional.